Environmental Liability for Transboundary Harms: Law and Forum Choice
University of Alberta Economics Working Paper No. 2005-01-10
44 Pages Posted: 31 Jan 2005
Date Written: August 10, 2006
We examine the economic consequences of choice of law and the choice of forum for the adjudication of transboundary harms. We examine strict liability and negligence and show that the socially optimal levels of care can be implemented in negligence only if the actions of the firm that caused the harm are adjudicated using the standards of the jurisdiction in which the harm occurs. This lends theoretical support to the extraterritorial application of domestic environmental laws in the case of transboundary disputes.
Keywords: Environmental liability, transboundary pollution, negligence, strict liability
JEL Classification: K32
Suggested Citation: Suggested Citation